Crytpocurrencies have taken another ugly leg lower overnight - on no new news-driven catalyst - extending the losses from Japan's FSA crackdown and sending Bitcoin back below $6,000 for the first time since Feb 6th.
This is the lowest intraday print for Bitcoin since Nov 2017 (breaking the lows of 2018)...
But Bitcoin is actually the best performer since Japan's FSA headlines while Bitcoin Cash and Litecoin are down 20% since Friday morning...
But while it is clear that many are throwing in the towel on the crypto space, CoinTelegraph's Helen Partz reports that the current bear market is not a funeral for Bitcoin “whatsoever,” CEO of BKCM LLC investment firm Brian Kelly said on CNBC's Fast Money segment June 22.
To back up his statement, Kelly provided three key factors.
First, he pointed out that the market sentiment is “approaching lows,” implying that a trend reversal is likely to follow.
Kelly called attention to the fact that Bitcoin is still trading at the same level as back in November 2017, whereas a year ago its value was 60 percent lower - around $2,500.
Next, Kelly mentioned the recent news that Japan’s Financial Services Agency has sent out business improvement orders to 6 domestic exchanges. He pointed out that while in the short run it’s going to be “a little tough,” in the long run it will help make the exchanges more “robust.”
Third, Kelly brought up the announcement by Mt. Gox to reimburse its customers and begin civil rehabilitation proceedings, following the $473 million hack in late 2013 and the resulting bankruptcy. Mt. Gox was considered to be the largest hack in the history of crypto, until this year’s $534 million Coincheck hack.
On June 5, Cointelegraph reported that Bitcoin has been declared “dead” for the 300th time, according to the 99Bitcoins “obituary list.” By press time, the cryptocurrency has “died” 315 times, with 69 “deaths” taking place this year alone.
Additionally, CoinTelegraph notes that Charles Hoskinson, co-founder of altcoin Cardano (ADA), tweeted June 20 that the entry of Wall Street into the crypto sector will bring in “tens of trillions of dollars:”
What's often missed by the cryptocurrency is going to die broken record media is that after the next wave of regulation, wall street is showing up to the party with all their locked up capital. That's tens of trillions of dollars entering the space eventually. Future is bright— Charles Hoskinson (@IOHK_Charles) June 21, 2018
Cardano, which is currently ranked 8th on Coinmarketcap, has a market cap of around $3.5 billion. Charles Hoskinson was also one of the founding members of Ethereum (ETH), crypto startup Invictus Innovations, and crypto tech company IOHK.
When asked by a commentator what exactly the crypto community is building, Hoskinson answered “an entirely new world:”
An entirely new world— Charles Hoskinson (@IOHK_Charles) June 21, 2018
The intersection of cryptocurrency and Wall Street has been welcomed by those who also see a potential influx in capital. In mid-May, cryptocurrency wallet and exchange Coinbase released a new suite of products designed to attract institutional investors by relieving security and regulatory compliance concerns. Speaking about the product release, the VP of Coinbase referred to “$10 billion” of Wall Street money that now had the potential to enter the market.
The “trillion” value has also been bandied around before, as Dan Morehead, CEO of $1 billion crypto hedge fund Pantera Capital said in April that a $40 trillion crypto market is possible, in part due to Wall Street’s increasing interest in clearing crypto trades.
Finally we note that while Bitcoin is down 70% from its record highs in Dec 2017, it is still up 136% YoY...